"Chicken for the World Cup"... Why Kyochon F&B Is Expected to Shine in Q2 [Click eStock]

Eugene Investment & Securities stated on May 14 that it expects customer demand for Kyochon F&B to increase this year due to events such as the World Cup and the Asian Games. The company maintained its target price at 6,300 won and its "Buy" investment rating.

Park Jongseon, a researcher at Eugene Investment & Securities, said in a report released that day, "The company is expected to record sales of 132.4 billion won and operating profit of 11.4 billion won in the second quarter of this year, representing year-on-year increases of 5.0% and 27.7%, respectively. We expect a return to sales growth along with improved profitability."

For the first quarter of this year, Kyochon F&B posted consolidated sales of 123.4 billion won, down 1.0% year-on-year, and operating profit of 5.3 billion won, down 50.6%. Factors affecting performance included free supply of exclusive cooking oil to franchisees, increased burden on headquarters for raw material cost hikes, and rising selling and administrative expenses.

Sales from overseas operations and new businesses rose by 20.0% and 19.8%, respectively, compared to the same period last year. Overseas business sales rebounded due to normalization of global stores in countries such as the United States and China. In addition, sales from new businesses continue to grow, driven by an increase in new brand stores and stabilization of operations.

Park commented, "With the opening of new stores in China and expectations for economic stimulus, sales and profits are likely to improve gradually. The company is pursuing strategic business expansion and diversification through global exports, which is a positive development."

This content was produced with the assistance of AI translation services.